I welcome the announcement by private health insurer HBF they will be resubmitting a lower premium for their members.

This follows the Government’s recent request for health funds to reconsider their proposed premium increases to ease pressure on consumers while the Government undertakes important reform of the private health sector.

This includes improving the way medical devices are priced in Australia.

While there is still a formal process to follow, today’s announcement by HBF is an encouraging sign for consumers and builds on the positive noises being generated by a number of insurers.

I hope it is also positive sign to other insurers that the Government is serious about working with the private health sector to deliver a better deal for consumers and there are real opportunities to deliver real reform.

Given the industry holds about $5.1 billion of excess capital, it’s an important moment for insurers to demonstrate to their members their commitment to future reform in the best way possible – cheaper premiums.

Ultimately insurers who try to maintain high premium increases in the face of the Government’s request and consumer dissatisfaction over their current policies risk missing the boat and leaking customers elsewhere.